Artificial intelligence will test professional standards in the insurance sector, and firms must balance technology ado
ption with ethical responsibility, Chartered Insurance Institute (CII) chief executive Matthew Hill (pictured top right) told more than 400 attendees at the organisation’s annual conference in London.
Speaking at the Shaping the Future of Insurance conference, Hill said technology should be viewed as a tool that can support the industry if applied with discipline and responsible intent. He told delegates that the future of insurance is not predetermined and said those working in the sector will have to make decisions about how AI is used within regulated environments.
According to Hill, investment in employees remains important as firms integrate new systems. He stated that the adoption of AI will not be measured by speed alone but by how it is used in a commercially viable way.
“The future of insurance is not something that will happen to us, it's something we will shape together. Innovation is inevitable. Impact is our choice ... Let's invest in our people, not just our platforms. Let's lead with integrity, not just intelligence, because in the end, the true measure of our success will not be how fast we adopt AI, but how wisely and profitably we use it,” said Hill.
The conference, held by the professional body, centred on the theme of Innovation and Impact. It featured a keynote address from Professor Richard Susskind, author of How to Think About AI.
Susskind said automation will be the immediate effect of AI in the next stage of industry development, but predicted that further changes will come over the next decade as clients begin to access AI tools themselves.
“Strangely enough, I think for professionals, our biggest competitors in the future are not competitor businesses, but our current clients who are empowered with AI,” he said. “This is deeply challenging, but it also throws up great new opportunities. I think the market will show no loyalty to our traditional ways of working.”
Susskind told delegates that future competition for insurers and other professional services firms may come from existing clients who are able to use AI to carry out tasks independently. He said this will pose challenges for established operating models and noted that firms will need to adjust as the market adopts other ways of securing insurance services.
“Do you compete with these emerging systems, or do you begin to build them? ...Someone has to build these systems, and I think that's the future of your industry ... How could you use AI to give your clients the outcomes they want, but in a way that's less painful, less costly, less intrusive, more convenient. That's the challenge, and that's the challenge of genuine innovation,” said Susskind.
What is your view on the role of AI in insurance—commercial necessity, regulatory concern, or both? Share your thoughts in the comments.
